Explanation of Financial Terms

Asking Price
The total asking price of the business for sale.

Gross Revenue
All income the business received before any cost-of-sales or expenses have been deducted.

Cash Flow
Arrived at by "starting with your net (before tax) profit. Then, add back in any payments made to the owner, interest and any depreciation of assets." For example, if the net profit before taxes was $100,000 and the owner was paid $70,000 then the cash flow is $170,000.

Inventory
The value of the merchandise, raw materials, and finished and unfinished products which have not yet been sold. If there is no inventory price listed then the seller did not provide it.

FF&E
Furniture, fixtures and equipment that will remain with the business, such as desks, office cubicles, decor elements of a restaurant or showroom, computers and office machines, pots and pans, dishes, display cases, manufacturing equipment, etc., depending on the type of business.

Real Estate
The value of property owned by the business. May be included in the asking price or offered separately. If no real estate value is listed, it was not provided by the seller.

Business Description

This is a highly profitable, growing business servicing the greater Puget Sound area. The company provides insulation via retrofitting and new construction, with more emphasis on commercial buildings than residential. Other services offered include small remodels and additions and pest clean-up.

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Commercial & Residential Insulation Services

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